Correlation Between Sanbo Hospital and Hefei Metalforming
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By analyzing existing cross correlation between Sanbo Hospital Management and Hefei Metalforming Mach, you can compare the effects of market volatilities on Sanbo Hospital and Hefei Metalforming and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sanbo Hospital with a short position of Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Hefei Metalforming.
Diversification Opportunities for Sanbo Hospital and Hefei Metalforming
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanbo and Hefei is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach and Sanbo Hospital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sanbo Hospital Management are associated (or correlated) with Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Hefei Metalforming
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to generate 1.39 times more return on investment than Hefei Metalforming. However, Sanbo Hospital is 1.39 times more volatile than Hefei Metalforming Mach. It trades about 0.04 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.0 per unit of risk. If you would invest 2,960 in Sanbo Hospital Management on October 13, 2024 and sell it today you would earn a total of 1,200 from holding Sanbo Hospital Management or generate 40.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.82% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Sanbo Hospital Management |
| Hefei Metalforming Mach |
Sanbo Hospital and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Hefei Metalforming
The main advantage of trading using opposite Sanbo Hospital and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Hefei Metalforming can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Sanbo Hospital vs. Kangxin New Materials | Sanbo Hospital vs. Allwin Telecommunication Co | Sanbo Hospital vs. Jiangnan Mould Plastic | Sanbo Hospital vs. GRIPM Advanced Materials |
| Hefei Metalforming vs. Dezhan HealthCare Co | Hefei Metalforming vs. Shandong Sinoglory Health | Hefei Metalforming vs. Eastroc Beverage Group | Hefei Metalforming vs. Shanghai Rongtai Health |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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